MIRA INFORM REPORT

 

 

Report No. :

500999

Report Date :

29.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

STATE PHARMACEUTICALS CORPORATION OF SRI LANKA

 

 

Registered Office :

No 75, Sir Baron Jayathilaka Mawatha, Colombo 01

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

2015

 

 

Date of Incorporation :

21.09.1971

 

 

Legal Form :

Corporation (State Owned)

 

 

Line of Business :

Producer, Importer & Distributor of Pharmaceutical and healthcare products and equipment

 

 

No. of Employees :

900

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Sri Lanka

A2

A2

 

Risk Category

 

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

SRI LANKA - ECONOMIC OVERVIEW

 

Sri Lanka is attempting to sustain economic growth while maintaining macroeconomic stability under an IMF program. The government's high debt payments and bloated civil service cadre, which have contributed to historically high budget deficits and low tax revenues, remain a concern. Government debt is about 77% of GDP and remains among the highest of the emerging markets.

 

The new government in 2015 drastically increased wages for public sector employees, which boosted demand for consumer goods but hurt the overall balance of payments and reduced foreign exchange reserves.

 

Tourism has experienced strong growth during recent years following the resolution of the government's 26-year conflict with the Liberation Tigers of Tamil Eelam. The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth.

 

Source : CIA

 

Company Profile

 

Basic Information

 

Name of Subject of Inquiry

State Pharmaceuticals Corporation of Sri Lanka

Legal Form & Status

Corporation (State Owned)

Chairman

Mr Sarath Liyanage

Primary Line of Business

Producer, Importer & Distributor of Pharmaceutical and healthcare products and equipment

Principal Place of Business

No 75, Sir Baron Jayathilaka Mawatha, Colombo 01 Sri Lanka.

Tel. No: (00 94 11) 2320356 - 9 Fax. No: (00 94 11) 2447118 E-Mail : chsec@spc.lk / spcmd@spc.lk Web Site: http://www.spc.lk/

Employees

Approximately 900

 

 

Company Details

 

Registration No

Established on September 21,1971 under the State Industrial Corporations Act No. 49 of 1957 as a state owned business Undertaking.

Date of Registration

21st September 1971

Re-registration No

NA

Date of Re-registration

NA

 

Registered Office

No 75, Sir Baron Jayathilaka Mawatha, Colombo 01, Sri Lanka.

Board of Directors As At 31st March 2017

Hon. Rajitha Senaratne

Minister of Health Care & Nutrition

Hon Faizal Cassim

Deputy Minister

Hon. Hassan Ali

State Minister of Health Care & Nutrition

Mr Janaka Sugathadasa

Secretary

Dr. Anil Jayasinghe

Director General Of Health Services

Sarath Liyanage

Chairman

Dr. M.H.M. Rumie

Managing

Director

K.M.D.R. Dassanayake

General Manager

Mr S R Rajapaksha

Chief Financial Office

Issued Share Capital

NA

No. of Shares

NA

Preferential Shares

NA

Nominal Value of Share

NA

Auditors

Auditor General's Department - Government of Sri Lanka

Company Secretaries

NA

Main Bank/s

Bank of Ceylon, Peoples Bank, Commercial Bank of Ceylon, Standard Chartered Bank

 

 

FINANCIAL DETAILS

 

- Most recent available Financial Information

 

• Please note that we are not in possession of the current financials as they have not published the financials since 2015 year ending at 31st December 2017

 

 

STATE PHARMACEUTICALS CORPORATION OF SRI LANKA

 

TEN YEAR SUMMARY - STATEMENT OF FINANCIAL POSITION 

Its.

OtMriptlon

2015

As

2014 2015 Rs Rs

2012

As

2011

Rs

2010

Rs

2009

Rs

2008

to

2007

As

M

*1

Contributed Capital A Rnnvn

12*117

125,117 125.117

125,117

3,502.607

3,412,700

2.416,452

2317,690

1,966,458

1.744,655

Current Assets

 

 

 

.

 

 

 

 

 

inventories -SPC

2364,091

1.390,608 1.703322

1331,857

987.733

979315

777662

1,004.208

750,174

660,582

Goods r» Transit - OHS

784,142

528,710 1 809.462

733 963

1,955,991

3,755,465

1,105347

1,780391

710,240

 

Trade and 0th€* recnvab**

XOSt ,445

2J7CU2I 1 838 <602

11.11)1022

5,123.702

1

1,453354

2.1 >9.753

2.036168

1.991.061

2.764.954

Deposits A Prepayments

13,046

37.964 32.948

24.073

24,479

22.369

11,564

12.167

6.928

7312

Cash in Hand ft at Barit

790,525

401,717 1300667

21*359

600307

671,104

263,769

250660

480,787

192.511

Total Current Assets

7337,449

S, 129322 12.627.901

11320374

1.722.712

7,881,607

4396.017

5364.294

1.919,190

1325.562

 

Current liabilities

[Trade and ether Payables

1347.411

2350,497

3,649J62

3033684

1,784.156

1351301

739314

544,979

645.448

667,85)

income tan payable*

397,758

177.769

290j045

191,440

219332

232,469

200.169

225339

252,090

211,415

Deterred Income

1.003

746

KK-v

1392

ac

1.359

 

 

 

 

: Current Financial UaMlttes

56,689

781719

6.254353

7896709

4,716855

4.131344

1,458338

1596334

1,588.509

1.476646

Total Civrent liabilities

1.602.661

2.507,751

10,194,649

11,122,125

6,720.461

5.916,971

2.198321

1.166.452

2.486.047

2.155,914

'Non Current Assets

1156*14

2.1389/1

1354332

1696279

1.605.4)6

1

1.561,496

619.131

595814

593.907

554604

Non Current Liabilities

213,193

372319

158403

124358

105082

113350

120375

95.166

86392

79,198

Net Assets

5.147307

4.395,646

4,111381

3,771,870

3302.607

Ml 2,780

M18.4S2

2317,690

1.960.458

1,744.855

 

 

 

STATE PHARMACEUTICALS CORPORATION OF SRI LANKA

TEN YEAR SUMMARY - INCOME STATEMENT

Turnover                                                                                                                            «.

Descriptor

201S

*014

*013

2012

2011

*010

7009

2004

2007

2006

Ijmoeer-SfC

3206*76

MSV1M

070.100

47030)2

4008.170

4197759

4011962

3347,167

3.092.109

2.971146

1jit»DM

19.17M07

17769 008

16B1V666

16608.492

12569290

101960571

9,990 429

9J06330

0J15J71

S.616099

ToulTumeve*

24.463.603

22.134,159

21.135,066

20.891.724

17.375,460

15.166330

14.006391

12,853.697

11.906160

6540.047

VC

1.410,722

1,247,074

1,136.403

•91,541

1.043,453

•95271

094237

872,024

699.794

602256

GfOil Surplus DHS

1.300731

1.2)3.190

1.10)004

1.t9)./t4

700.7)5

68014)

677.071

) 76)09

576091

10653)

Cro» Strain

2.7974M

2.500.772

2.321.407

2,104.755

1.B24.10B

1.603.516

1.51610)

1.396.3)2

1.277.005

1.071,709

 

 

Ovrfceeds

*015

*014

2013

2012

*011

2010

2009

2000

*007

2004

Other home

51259

2S738

17J37

15,105

23,231

20414

18.107

2X6)5

14177

10X125

Wn nvrXf* 1

I10V7.97C&

1969.744S

1786.9041

(670635)

0614,019)

16004751

15731221

CSSS.4J8I

1403452*

143407V'

Other OperjOeg Npftues

C561257)

<7460251

(7012941

(7452 301

<492.6)11

(2052771

12031201

9169871

(111.3901

(115,03 Vi

OperetngBreto

1.227703

04.441

740.244

791,995

740.769

012.670

757,449

444454

9072*0

312.704

France Cost

M.5991

024t

12271

(*7)

13,6611

117,7341

(8041)

(7.9671

(7400.

103971

OvtrOrt

(734)

<1446591

(1304)

129067 7>

<4192)51

(3100701

13500411

(7172951

(27327)1

11214761

MOwliOi

I1.62S.660I

(1200.13*1

<1,500. *0*1

(1,709,7591

11,329,5461

(12*4,059

<1.156.5241

.674.4621

(■73,505)

1619.7431

rruncc name

5.006

4.096

4357

3959

4.102

3.900

1302

2946

1127

1432

Profn belore 'u

1.2*6137

741.554

762.992

497660

321.975

403,774

401,188

449.144

419,594

385,063

Toattoe

610139

192.145

320,006

205202

220.473

243.907

144,083

joe

232,0' 3

206452

Net hoM for the period

619.599

549,409

442.904

291.770

95.402

239,997

246,304

7)9457

106,491

17*211

De*ned bevfta prfr

2J9J80;

!7120441

1)1.5741

(1430*1

11.325

 

 

 

 

 

lecO ConptfouM Imurm

059.403

317.365

411.410

in Am

104427

2)9.967

254,305

239,957

106.591

17M11

 

 

CURRENT INVESTIGATION

 

Company Logo

 

History

 

The State Pharmaceuticals Corporation was established in 1971 under the State Industrial Corporations Act Number 49 of 1957. This far-sighted decision was the result of the report submitted by Prof. Senaka Bible and Dr.S.A. Wickramasinghe report (March 1971) based on an assignment given to them by the then Prime Minister, Mrs. Sirimavo Bandaranaike.

 

Going by the vision of its founding father Professor Senaka Bibile, the State Pharmaceuticals Corporation (SPC) has at all times striven to provide quality assured drugs at prices that are reasonable in the market. For the past 40 years SPC has been the sole supplier of pharmaceuticals, surgical consumable Items, laboratory chemicals and equipment to all institutions administered by the health ministry.

 

Caption

 

The State Pharmaceuticals Corporation (SPC) a state-owned enterprise will once again record a profit in the excess of Rs. 1.9 billion by end of 2017 said its Chairman, Sarath Liyange.

 

In an interview with Daily News business he however said that the profit was around Rs 2.5 billion in 2016. "We will fall short of previous year profit due to the lowering of prices of some of the essential pharmaceutical items by the government this year."

 

He said that the corporation in the last two years has made a remarkable turnaround emerging as a profit making organization. SPC set up in 1974 is the largest supplier of drugs in the country, and is tasked with providing quality-assured health care items that are safe and effective, at an affordable price, while educating the public on the rational use of drugs. It also employees about 600 staff. "I am ashamed to admit that SPC was branded as a one of the most corrupt state owned entities and we have now changed and this is one of the main reasons for the organization to be making profits once again."

 

He also said that with quality drugs SPC once again won confidence and also regained back its market share and has opened new outlets to reach out to the masses. "We are also moving some of the Osu Sala outlets to our own premises, which are better locations and this too will cut costs and bring in more business."

Liyanage said that they have decided to stop all medical drug imports to the country by 2020."To meet this objective we have tied up with both local and foreign Pharmaceutical

 

Manufacturing companies to set            up their factories in Sri Lanka. We have given them a buy back grantee and pharmaceutical companies have already set up two of the region's largest manufacturing plants in Horana and Koggala. They are also allowed to import tax free and this is encouraging more companies to come and start factories in Sri Lanka."

 

Operational Details

 

General

·         Importing and Trading of Pharmaceuticals and health care items.

·         Supplying of Pharmaceuticals and health care items to the Department of Health services. (DHS).

·         Manufacturing some pharmaceuticals and health care items.

Eg. Jevanee, Glucose.

 

Products

*                      Finished Pharmaceuticals

*                      Surgical Devices

*                      Pharmaceutical Raw Materials

*                      Laboratory Equipment

*                      Chemicals

Sole Importers of Health Care Products for the Government of Sri Lanka

Employees

Approximately 900

Associate Organizations

Ministry of Health - http://www.health.gov.lk/

State Pharmaceutical Manufacturing Corporation - http://www.spmclanka.lk/

Cosmetics, Devices & Drug Regulatory Authority - http://www.cdda.gov.lk/

 

Import

Mainly India and other Asian Countries along with worldwide imports of specific items.

 

 

INFORMATION DENIED

 

Management non – cooperative – (00 94 11) 2320356 - 9

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.04

UK Pound

1

INR 92.28

Euro

1

INR 80.62

LKR

1

INR 0.42

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Information Gathered by :

KAM

 

 

Analysis Done by :

VAR

 

 

Report Prepared by :

TPT

                                                


 

RATING EXPLANATIONS

 

Credit Rating

 

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.